techniques
DESCRIPTION
Predictive analytics techniquesTRANSCRIPT
Promotion Analytics
-Amith Reddy
OptimizationOptimize promotion campaign for a fixed budget
Promotion response analysis
Analyze promotion responses
Targeted Promotions
Identify the customers for targeted promotions
Affinity Grouping
Identify prospects for cross-selling
Segmentation
Segment customers using purchase behavior
Steps in Promotion Analytics
Step Technique Comments
Segmentation Cluster Analysis Input : Purchase HistoryOutput : Segments of customersUse: Helps to target customers based on their purchase behavior
Affinity Grouping
1.Market Basket Analysis 2. Collaborative Analysis in much complex systems
Input: Transaction history, each row represents a transaction, and each column represents a product codeOutput: products that sell well together in a single transaction Use: 1. Can suggest products to customer in app2. Can be used in promotion designing to cross sell
Targeted Promotions
Decision Tree Modeling Input : Purchase history during earlier promotion periodsOutput: 1. Identify customers who are more responsive for promotions2. Gain and uplift measurements for cost/benefit analysis
Promotion response analysis
A/B testing Identify the best promotion for a particular customer segment
Optimization Linear Regression Input : Purchase history during earlier promotion periodsOutput: Weight on each type of promotion